HRM Scenario in INDIA

Human Resource Management (HRM) Scenario in India
Prof.Satya Sidhartha Panda.
Bangalore :India
1.1. Introduction
Though HRM caught up in the world, and was duly imitated in India, but is principally practised in a handful of organisations. However, more and more organisations are waking up to its importance, and assigning the related tasks at Vice President (HR) levels.
1.2. Span of HRM
HRM relates to functions specific to human beings in an organisation, as well as some traditionally attached/assigned functions to such a wing. These are:-
HR planning – job analysis, description and specification.
Recruitment.
Selection.
Orientation (or socialisation/induction and confirmation).
Training.
Development.
Performance appraisal and promotion.
Compensation (including privileges) and motivation.
Transfer.
Demotion and separation (discipline, conduct).
In IR, traditionally and additionally the functions carried out by the 'Personnel' department includes - Law cell, Welfare, Medical, Vigilance (now separated as General Administration), Participation in Management, Unions.
1.3. HR planning
Planning for human resources is faced with several peculiar problems.
§ It takes a long time to procure this resource as it requires selection, recruitment and training apart from the administrative hurdles of proposal-approval-concurrence-indent (private sector resorts to online job placements, walk-in interviews etc.).
§ The job specification must consider the present and future employability of the person(s) to be recruited (the most ignored function in IR!).
§ As layoffs are not possible - careful recruitment and perfect development plans must exist for existing strengths.
1.4. Recruitment
Recruitment itself comprises - Advertisement/application, Screening, Preliminary interview or written testing, Background investigation, In-depth interview, Physical examination, Job offer. These functions are primarily carried out by Railway Recruitment Boards for IR on indents placed by the Railways.
1.5. Selection
Selection is the process of filling vacancies from existing organisational strength. This function involves - eligibility, written test, interview, physical examination.
At times re-deployment of surplus strength (e.g. steam traction closure), training for other jobs in organisation etc. may also be involved. In Railways, filling of posts of Reservation Clerks was taken on a massive scale during the spread of computerised reservation system. They were trained after selection.
Organisation’s Corporate Plan and future strategy play an important role. IR lacked a corporate plan till 1980s! Even the present one says nothing about HR plans for future.
1.6. Orientation (or socialisation/induction /foundation and confirmation)
Familiarity with Organisational Structure and Functioning is called orientation. This is followed by Job-specific training for the particular job the employee is required to carry out.
In IR – no such training plan exists for Group D (the largest proportion of our HR. For clerical staff too, it is almost non-existent, recently some programmes have started in some Railways, but no clear direction from Railway Board exist.
For Group C – 1 ½ years of programme, including on-job training in some departments exists, but seldom monitored or implemented properly. It suffers also from the drawback of 'learning old mistakes (and shortcuts!) along with old gurus'. Part of this training for supervisors is held at – ZTS/ZTC for common and STS/STC/BTC for departmental courses in Railways. However, all employees do not have to undergo common courses.
Group A – 3 years probation (1 ½ years each in training & posting). This includes a Foundation and an Induction course for all, and two departmental (Phase I and Phase II) courses too. All have mandatory examinations to clear before posting and confirmation.
1.7. Training … (training = to improve current job performance)
Training is very important for continued competitiveness and organisational improvement (sometimes through change). Traditional methods include – one with one, on-the-job, job-rotation, apprenticeship etc. However, training institutes of each department spread across divisions, Railways and for entire IR supply the necessary inputs.
Modern training methods are also used for officers and supervisors in IR – off-the-job, classroom, seminars, paid external courses etc. Small organisations, which can not have their own training centres have to rely entirely on such methods.
Such training is necessary for artisans too, to learn new skills, multi-skilling, new tools, methods, new jobs, which is ignored in IR. Even for supervisors, training in new fields is necessary, whether in-house or market, to learn new technologies. Their training must also include organisational structure and working, and managerial training, which is lacking in IR.
Training for Managers is planned but not taken seriously enough, and is not focussed on developing definite skills. It is often haphazard. The methods used are – seminars, workshops, courses etc. It does not include important managerial concepts like financial management, HRM, managing stores, IT etc. Further, no organisational plan exists.
Often, after training (especially in new technologies abroad) officers are not posted on related assignments (e.g. RCF).
Continuous assessment and analysis of (all) job requirements is essential for all levels of HR. This function should be determined by the departmental executive, and organised by the IR's 'Personnel' department.
1.8. Development … (Development = for future job requirements)
In IR such courses are planned only for officers. CTIs (like IRIMEE) run a few courses targeted on the supervisors, but can not meet the required quantity for IR. These must concentrate on future responsibilities (e.g. next higher level of authority to be occupied).
By the same logic, artisans and Group D employees also must be trained for future job responsibilities, which occurs only in namesake.
The training of supervisors must include modules on inter-departmental activities, co-ordination and exposure to managerial activities, this is commonly ignored. Complete understanding of the organisation as a dynamic entity is important at all levels. IR has a long way to go in bringing this to practice.
1.9. Performance appraisal and promotion
PA should be a continuous activity and not like final examinations in school. Perhaps, as in many organisations, it should be linked with compensation (i.e. salary etc.), and promotion.
It should be a transparent process with clear yardsticks and as objective as possible. Formal appraisal should be interspersed with (intermittent) informal appraisals. Manager’s task is not to evaluate others performance, but to help them to improve it. Combined fixing of targets with emphasis on fundamental (long-lasting) improvement, clear understanding of expectation, including a chance to train one’s self through courses elsewhere.
Modern systems of appraisal are 360-degree (an employee is appraised by his juniors, colleagues and seniors) and 540-degree (where outsiders with whom he interacts, say of other department, or other organisations also appraise his performance). Can you think of more informal ways of performance appraisal?
In IR – target fixing is arbitrary; many times conflicting within departments or sections. Rewarding is limited to only the best giving the message 'either be the best or don’t work!' Rewards should be commensurate and proportional to achievement.
Incentive to acquire additional qualification is negligible without re-imbursement of expenses. In fact, permission is required to acquire additional qualification(s), though Right to Education is a fundamental constitutional right! An encouraging policy should be followed.
1.10. Promotion
No doubt, promotions should be fair and just, and frequent, giving regard to employee’s self development speed. Development (through in-house training or in market) of professional abilities should be linked with each new assignment (especially new items like – computers, management thinking, new technologies associated with their area of activity etc.)
In IR – promotions are infrequent (stagnation), especially in Group D. Faster developing employees are given no extra chance. No extra development programme is associated with promotion even though vast difference in area of responsibility arises immediately after promotion (especially in the case of officers, such as, workshop to division, etc.).
1.11. Compensation (and privileges) and motivation
Salary (and perks) should be well defined and proportionate to job requirements, external environment, peers in organisation and outside, enabling employee to meet his needs. Even if the job-description is same, but a posting in a plum city or an arduous area is not taken into account. Several other such factors are ignored, giving rise to friction and jealousy and affecting the organisation.
The criteria to take into consideration should include – educational qualification (also additional ones acquired during service); contribution to organisation (say through performance appraisal); specific parameters of organisational growth.
Motivation is strongly linked to compensation (and is a vast field in itself). Organisational incentives play an important role (family planning increment, additional educational qualification, innovation, public service, creativity etc.).
In IR – salary structure is complex, employee is unable to understand. No regard to performance in compensation offered, employee’s requirements are seldom considered, (and very little to) outside environment 9i.e. comparative remuneration in private sector, market fluctuations, arising needs to maintain standard of living etc.).
Employee’s extra contribution is totally unrewarded, therefore climate for innovation doesn’t exist. Organisational incentives are (almost) non-existent. In IR, confidential letters - offering a challenge in present or new post, praise/appreciation etc. can play an effective role for Group C employees and above.
1.12. Transfer
Transfers are used more as a tool for harassment or expressing displeasure, and seldom aimed at employee development through variety in exposure. At least they should compensate adequately for the trouble caused - displacement costs (schooling, personal telephone, gas etc.). Effort should also be made to provide immediate housing, schooling, telephone, transport, spouse's job (becoming a necessity day by day) and other basic necessities. Additional adequate incentives/compensation for change in environment can ensure that people stop fearing transfers.
The element of requisite training before taking up new responsibilities also can not be overruled. Hardly any such provision exists in IR. Railway Board has disallowed transfers just before retirement etc. recently.
1.13. Demotion and separation (discipline, conduct)
All organisation have Discipline & Conduct rules in one form or the other, which are traditionally enforced but not encouraged. IR provides a form of few punishments (through minor and major penalty) to choose from for all and any type of mistakes committed by employees. No doubt that a few 'standard' punishments can not serve the purpose of behaviour correction for all occasions. At times, several new methods have to be tried out, like many other organisations do.
Alternative disciplining measures – time for public/social service, gardening, extra-time in office in odd jobs, compulsory (paid) leave for one day, and many other creative ideas are possible. Sometimes, confidential letters – show-cause, displeasure, warning etc. can play an effective role. (Can you think of some more creative ideas for mending behaviour?)
If a punishment has to be awarded, a thought must be given to the kind of person to which the punishment is being awarded. To analyse this, let us take a look at the Maslow's Hierarchy of Needs.
Maslow points out that a human being's (types of) needs in life can be arranged in a pyramid of five tiers. The bottom tier representing the primary needs for 'sustenance of life' - food, shelter, clothing, medicine, sex etc. On suitable satisfaction of these needs, a human being looks at the second tier of needs 'family requirements' - love of spouse, son/daughter, father, mother, blood relatives etc. It is after this tier that the needs falling in the third tier come into force, the 'societal needs' - belonging and love of fellow human beings in a colony or town, perhaps. The next or fourth tier represents the need for social status, being an outstanding and all-admired person in the society etc. And, the last or fifth tier of need reflects the 'self-actualisation' need - the search for everlasting peace with one's self, for truth and God. In rare cases, e.g. saints, philosophers et al., we find people rising from the first or second tier to the fifth tier directly.
When awarding a punishment to an employee, the punishment most likely to affect him is the one which affects his achievements in the tier to which he is struggling to climb. For example, if a man's tier 1,2 and 3 needs are met, and he is striving for tier-4 need, then he is more likely to be affected by a 'censure' than by a WIT (withholding of increment temporarily - which is likely to be taken by his peers as 'none of his faults', 'a case of bad system'). But a censure would be looked upon as an insult bestowed on him by his peers.
Similarly, a censure to a man attempting to satisfy his first (or second) tier of needs would not affect him much, but a WIT would.
In IR, not only are the ways and means to correct behaviour limited to prescriptions in the book, but also the powers to usefully employ awards are extremely limited. Only a combination of the two can successfully serve as a means for behaviour correction (and motivation).
1.14. Legislation
In India – those applicable in an industrial situation are – Industrial Disputes Act 1947, Trade Unions Act 1926, The Industrial Employment (Standing Orders) Act 1946, The Factories Act 1948, The Payment of Wages Act, 1936, The Minimum Wages Act 1948, Workmen’s Compensation Act 1923, Payment of Bonus Act 1965, Employees Provident Fund and Miscellaneous Provisions Act 1952, Employees State Insurance Act 1948, Payment of Gratuity Act 1972. Others – Consumer protection; human rights; and new legislation upcoming – The Working Women’s (Privileges and Prevention of harassment) Act; Environment protection law (Prevention of pollution) etc.
In other countries – Controlling over-consumption of precious resources; Mandatory adoption of new technology; Mandatory workplace facilities (phone, basic necessities shop, crèche, first-aid, hygiene, pollution (noise, smoke) etc.); Minimum quality of service etc. (Can you think of more topics on which law may come up in future?)
In IR – some basic laws related to wages, payments are followed; blissful ignorance of most of the others. Many laws are years away from taking shape. Proposals for provision of such facilities receive poor priority at HQ, if not mocked at! (A detailed discussion is beyond the scope of this module).
1.15. Welfare
Welfare makes the organisation dear to its employees and grants it social sanction - Tobacco and Liquor companies invariably sponsor many sports events, and plant trees, mend roads, make parks etc. to obtain social sanction. It plays a very important role in remote places - where facilities can be provided by organisation only, such as medical, schooling etc. Newer ways, like employing husband-wife pairs and transferring together is gaining ground across the world. It boosts employee morale, and improves productivity.
In IR – generally, Welfare Inspector is an unseen bird; Grievance redressing system lies on paper (but is a very effective motivator when enforced). Welfare Inspector’s leave for the nominated day is supposed to be sanctioned only by the field-officer where he is deputed, after fixing another day for his arrival instead. No individual (or group) grievances should be entertained without its Grievance Register serial number and date clearly endorsed on it– always insist on this. HQ Officers do not take interest in grievance machinery’s working. Pending PNM items, pending grievances of General and SC/ST category should be a PCDO item. Report outstanding grievances and period since outstanding to CPO’s office quarterly or monthly.
IR provides sports & recreation facilities, holiday homes, schools, canteens. At some places, even school buses, provisions shop, employee banking and loan schemes, colleges (an Engineering college by IR is under proposal) etc.
An effective motivator is an officer's special interest in pending payments of staff - group payments and then individual; applications for loans; etc. Holding a periodic meeting with APO, WLI, administrative supervisor and effected employees helps in quicker solutions and implementations. Gaining trust of employees to improve performance is a must for officers, and this is a proven tool.
1.16. Medical
Generally organisations re-imburse expenditure in nominated hospitals (putting limits on category of room entitled etc.), while some may also sponsor all employees and their families for a group (medical) insurance scheme.
In IR – medical facility is a part of welfare (expenses in Demand 11), however plagued with poor infrastructure, and poorer service. Corruption is wide spread (to the extent of hindering railway operations through sick-fit certificate). Often doctors/specialists are inadequate and can not keep pace with modern medical technology. Prevalent poor management (of budget, stores, maintenance etc. causes it to serve as a demotivator instead of being a welfare scheme.
Railways' own medical facilities may have been required at times when India's infrastructure was primitive. Today, barring a few odd locations, the scheme is futile and causes drain of a huge amount of monetary resource. (Can you think of alternatives that could be adopted in IR? … considering that medical emergencies (accidents) have to be met in-house?)
1.17. Vigilance
The role of vigilance is - protection of organisation’s interest. The structure exists only at HQ and Railway Board levels. It serves very less as a creative/useful tool of contribution to organisation in IR, but has immense non-sense value.
No system of 100% cross-examination of, say, deals above a particular value (by a third party); 0 to 25 % of sample check of others in varying range. Possibility of nuisance also through bogus complaints against good persons which makes people keep their hands back even from good work. External vigilance is more effective than in-house (as people return to original posts again, for example, Safety organisation of IR is under Ministry of Aviation, and persons on deputation do not return back to Railways).
1.18. Participation of Railway Employees in Management (PREM)
The old tradition was to collect suggestions in a box. However, modern and newer methods which have evolved across the world have been employed in IR too, but less in spirit and more on paper.
New methods include - joint meetings, joint target fixing, election or nomination of employees in management committees, reserved posts for candidates from employees in management, profit sharing, share-holding in company.
These methods reveal great benefits - identification with organisation and its objectives; enhanced commitment; greater drive in employees to perform better; suggestions from ground level. (Can you think of some more methods in which employee participation can benefit an organisation)
In IR - PREM - Participation of Railway Employees in Management; paper work and lip-service only. Generally union representatives take-over aggressively parting with a few personal sops. These posts should specify certain academic criteria for qualifying candidates to become staff representatives, in the absence of which these forums become political playgrounds. The system of Quality circles, though begun on a good note, could not harmonise into a melody because top management attempted to apply ready-made elsewhere-successful formulae to Indian affairs.
Any scheme has to be adopted and applied principally, after detailing its principles for implementation through (locally) evolved procedures or better still, just guidelines, preferable after piloting them in a controlled atmosphere at just one place. It can not be handed down from top as a formula, and then overthrown one day to be replaced by another, which appears to be successful in another country. While Japan has benefited from JIT since >3 decades, India is far from even dreaming about it. So is the story of many other successful concepts elsewhere. However, private sector has achieved some notable results - their success being supported by two arguments which are against IR - the factor of 'size', and the 'will' to do it.
1.19. Unions
The expected role of unions is - protection of interests of workers and constructive contribution to organisation and society. However, the fact is far from fiction. The system of unions, in the hands of a bad management not only lays the organisation at gun-point, but also cultivates, slowly and over a period of time, employee complacency leading to organisational inefficiency and ineffectiveness. This has been the case with IR. In other countries there are examples of organisations which were purchased by the employees through their unions, when met with financial crisis, and U-turned into leaders in their fields!
IR practices a system of two recognised unions, who are at clobber-heads, apparently within themselves, but actually and conspiringly with the management. Instead of a possible one, there are now two monkeys behind one cat. Their thinking is self-centred not organisational, co-operation is coincidental, seen only in small pockets through individual efforts. Corruption is rampant, as election to posts is a source of making money. The organisational purpose is not served as it takes great effort to show the elected representatives (any) light because of limited understanding of organisational processes (most managers give up putting in that Herculean effort). Even if understanding exists, it is avoided as the task of explaining an issue to staff is best avoided by management and unions both.
With an understanding, and a hand-in-hand working a lot is possible, however, in today's scenario, neither management nor unions are taking the lead.
1.20. Organisational Behaviour/Culture
OB is an upcoming discipline of study and research. It affects employee morale, motivation, commitment and productivity, and thus – the organisation’s performance.
What is hurting IR …
IR lacks foresight – having no meaningful Corporate Plan(CP) (which is an exercise done once in 15 years, limited to corridors in Railway Board and not brought to notice of ground and field level managers); not backed by a Corporate Strategy to follow the plan and/or an organisational structure with assignment/responsibility to meet the objectives in strategy/plan; even the allocation of resources (money) is rarely governed by the CP.
Lack of managerial (not technical) competency (specifically lack of exposure in managers to multi-dimensional aspects of management) – Financial management; Stores/Inventory management; Human Resource Management; Asset utilisation and management; Technology Management etc.
Lack of creativity in management at top, middle levels; missing climate for innovation.
Political interference – creation of new zones/divisions; opening of new lines; gauge conversion; electrification; technology acquisition; … and many more areas.
Job disparity – at some places people are over-loaded; at others no work at same (or greater) pay – e.g. division-workshop-production unit; across departments – no compensation scheme for such arduous duties. Lack of feeling for organisation (departmentalism). Corruption. (Can you think of more issues that are damaging the performance of IR?)
Needless to say that the environment in which an employee works in IR is littered with should-nots. The impression it leaves on the new recruits in the organisation lasts for an entire lifetime, and spreads like an infection. It only amplifies, and its eradication, if not impossible, is definitely more difficult with passing time.
It is necessary that within your unit, you pass a message of care, belonging, brotherhood, equality and fulfilment. Even if the situation outside is known to be otherwise, within the apparently isolated precincts of a unit, easily an atmosphere of greater achievements and performance can be developed.